Naira Scarcity Persists As Banks Continue Disbursement

Although banks continued cash disbursement yesterday, Nigerians are still feeling the cash scarcity as it is yet to circulate across the country.

Checks by LEADERSHIP revealed that the apex bank is targeting releasing about N500 billion old notes into the economy in addition to about N500 billion new notes, thereby making available about N1 trillion cash in the economy, in a bid to allow Nigerians carry out their business transactions with ease.

However, credible banking industry sources believe the present cash scarcity is normal, despite the banks resuming massive cash disbursement since weekend, with the situation expected to ease off by weekend if banks continue cash disbursement at the current rate.

LEADERSHIP’s checks across Lagos metropolis, including Ikeja, Abule-Egba, Iyana-Ipaja, among other remote parts of Lagos, showed that Point of Sale (PoS) merchants are still charging exorbitant rates on withdrawal while most of them do not have cash to disburse.

For instance, two PoS operators approached by our correspondent in Abule-Egba area of Lagos still requested N1,000 extra charge on N5,000 withdrawal, stating that they still buy Naira at expensive rates from transporters and filling stations, among others.

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One of them, Mr. Tunde Ajayi, however, promised to go to the bank today to try and get cash to pay his customers.

Meanwhile, normalcy is gradually returning to banking halls as commercial banks in the country continued to dispense cash to their customers at both the Automated Teller Machines (ATMs) and within the banking halls.

The Central Bank of Nigeria (CBN) had, last week, evacuated cash from its vaults to disburse to commercial banks which it in turn instructed to open to customers all through the weekend to enable them make cash withdrawals.

Although most banks monitored by LEADERSHIP at the weekend did not open their banking halls to customers, they all had their ATMs dispensing cash, with customers withdrawing as much as N40,000. Many of the ATMs were, however, dispensing a maximum of N20,000 per individual at the weekend.

By yesterday morning, queues at the ATMs as well as at the banking halls had substantially reduced although in some areas, queues were still quite long.

LEADERSHIP’s visit to some of the banks revealed that some branches had run out of cash while some were disbursing a lower amount in the banking hall than the ATMs were dispensing.

A bank customer, who had made withdrawal at a branch of Guaranty Trust Bank (GTB) in Abule Egba area of Lagos, said while there was no crowd in the banking hall, the security operatives at the bank had locked the doors and kept customers outside for long, leading to a build-up of crowd in front of the bank.

“However, when I eventually entered, I was able to withdraw up to N20,000 from my account,” he said.

Another customer said she was able to withdraw N5,000 from a Zenith Bank ATM in Ikeja area of Lagos.

“There was no queue at all. I just walked up to the ATM and made withdrawal, but it wasn’t dispensing more than N5,000 per person,” she said.

Most banks around Ojota axis also commenced paying their customers either through the ATM  or over the counter.

For instance, Zenith Bank at Ogudu paid its customers over the counter, though the ATM was not dispensing cash. Customers could withdraw up to N20,000 at Union bank at Ojota also paid its customers as well, but had massive crowd at its ATM.

While applauding the CBN for dispensing cash to banks, some customers who spoke with LEADERSHIP, however, complained of the crowd.

“We can see money now, but there is crowd at some of the banks’ ATMs. I know with time, it will reduce. I want to use this medium to thank CBN for reconsidering its decision, by making money available for us,” Mr Godswill Kingsley, a teacher, told LEADERSHIP.

The CBN acting director, Corporate Communications Department, Dr. Isa AbdulMumin, had at the weekend confirmed the evacuation of funds from the apex bank for onward distribution to banks, adding that the bank had also directed all commercial banks to open for operation on Saturdays and Sundays.

He said a substantial amount of money, in various denominations, had been received by the commercial banks for onward circulation to their respective customers.